HSBC Holdings PLC · LSE:HSBA
HSBC — HSBC Finance — FY2011 Earnings Presentation
18 slides from HSBC's earnings presentation, Feb 27, 2012
Slide 1: HSBC Finance Corporation – Presentation (announcement)
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Slide 2: HSBC Finance Corporation IFRS Management Basis
HSBC Finance Corporation IFRS Management Basis 27 February 2012 1
Slide 3: Disclosure Statement
Disclosure Statement This presentation, including the accompanying slides and subsequent discussion, may contain certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Finance Corporation. Any forward-looking information represents exp
Slide 4: 2011 Financial Results (1)
HSBC Finance Corporation 2011 Financial Results (1) 2H 2010 1H 2011 2H 2011 US$m Card and Consumer Card and Consumer Card and Consumer Total Total Total Retail Svcs(2) and Other(3)(4) Retail Svcs(2) and Other(3)(4) Retail Svcs(2) and Other(3)(4) Net operating income before loan impairment charges ex
Slide 5: 2011 Financial Results (1)
HSBC Finance Corporation 2011 Financial Results (1) 2010 YTD 2011 YTD US$m Card and Consumer Card and Consumer Total Total Retail Svcs(2) and Other(3)(4) Retail Svcs(2) and Other(3)(4) Net operating income before loan impairment charges excluding changes 6,115 2,805 8,920 5,462 1,749 7,211 in Fair V
Slide 6: Continued reduction of balance sheet in the US
HSBC Finance Corporation Continued reduction of balance sheet in the US Customer loans(1), (3), (4), US$bn 120.0 116.7 108.2 102.0 93.5 91.3 86.0 83.2 81.0 80.3 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 180 day 2+ Delinquency (1), (2), (3), (4), US$bn 20 17.1 25% 15 13.6 20% 12.1 11.1 11
Slide 7: US customer loans – Run-off portfolio and Credit Card and Private Label
HSBC Finance Corporation US customer loans – Run-off portfolio and Credit Card and Private Label Customer loans(1), (3) Run-off portfolio, US$bn 82.2 78.9 73.3 68.8 11.7 1.0( 2 ) 10.8 1.0( 2 ) 61.3 9.8 58.4 55.7 8.8 53.5 51.5 49.5 8.1 7.5 40.9 6.8 6.3 5.8 39.5 37.9 5.4 36.2 34.7 33.3 32.1 31.1 5.8 3
Slide 8: US Mortgages: Continuing to shrink the Mortgage Services portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Mortgage Services portfolio Mortgage Services Customer loans, US$bn 22.8 21.8 20.7 19.5 18.5 17.6 16.8 16.1 15.5 14.9 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 180 day Mortgage Services 2+ Delinquency(1), US$bn 10 19.6% 21.2
Slide 9: US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio Secured Consumer Lending Customer loans, US$bn 40.9 39.5 37.9 36.2 34.7 33.3 32.1 31.1 30.2 29.2 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 180 day Secured Consumer Lending 2+ Delin
Slide 10: Impairment allowance
HSBC Finance Corporation Impairment allowance Mortgage Services Real Estate Secured, US$m 2,419 460 353 463 417 1,844 398 304 472 387 1,846 (640) (20) (151) (650) (452) (353) (337) (334) (506) (384) Dec-09 1Q W/O 1Q LIC 2Q W/O 2Q LIC 3Q W/O 3Q LIC 4Q W/O 4Q LIC Other Dec-10 1Q W/O 1Q LIC 2Q W/O 2Q L
Slide 11: Managing risk: Credit Card
HSBC Finance Corporation Managing risk: Credit Card(1) Credit Card Customer Loans, US$bn 23.2 20.9 20.0 19.3 19.3 17.9 17.9 17.7 17.6 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Credit Card 2+ Delinquencies(2), US$bn 2 1.8 16% 1.5 12% 1.2 1.0 0.9 1 8% 0.7 0.7 0.7 0.6 7.7% 7.0% 5.9% 4% 5.3% 4.8% 4.0
Slide 12: Managing risk: Private Label
HSBC Finance Corporation Managing risk: Private Label(1) Private Label Customer Loans, US$bn 15.6 14.0 13.2 13.6 12.9 12.4 12.0 11.9 12.9 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Private Label 2+ Delinquencies(2), US$bn 1 12% 0.6 8% 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 4% 4.2% 3.9% 3.8% 3.6% 3.1% 2.8
Slide 13: Impairment allowance
HSBC Finance Corporation Impairment allowance Credit Card and Private Label(1), US$m 3,985 536 782 485 (1,213) 371 2,206 (1,095) (27) (880) 257 446 452 446 (738) 1,598 (32) (703) (558) (444) (472) Dec- 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q Other Dec- 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q Other Dec- 09 W/O LIC W/O LIC W/O LIC W
Slide 14: Managing personal non-credit card run-off
HSBC Finance Corporation Managing personal non-credit card run-off Personal Non-Credit Card and Other Unsecured Customer Loans, US$bn 11.7 10.8 9.8 8.8 8.1 7.5 6.8 6.3 5.8 5.4 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 180 day Personal Non-Credit Card and Other Unsecured 2+ Delinquencies(
Slide 15: Loan impairment charges
HSBC Finance Corporation Loan impairment charges(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 25% 4 25% 1.2 20% 1 0.8 15% 3.2 12 .1% 0.5 0.5 0.5 10% 20% 0.4 0.4 0.4 9 .2 % 0.3 3 5 .9 % 5% 5 .8 % 5 .9 % 6 .2 % 6 .0 % 4 .6 % 3 .3 % 0 0% 4Q09 1Q10 2Q10 3Q10 4Q10
Slide 16: Amount written-off
HSBC Finance Corporation Amount written-off (1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 2 30% 7 40% 6.5 25% 1.3 1.2 20% 35% 1.1 6 1 0.9 15% 0.7 0.7 13 .4 % 13 .1% 12 .8 % 0.6 0.5 0.5 10% 10 .7 % 30% 9 .2 % 8 .9 % 7 .4 % 5% 5 6 .1% 6 .3 % 0 0% 4Q09 1Q10 2Q10
Slide 17: 2+ Delinquency
HSBC Finance Corporation 2+ Delinquency(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 3 15% 20 30% 2.4 2.0 2 1.7 10% 17.1 1.5 1.3 25% 1.1 1.0 0.9 1.0 1 6 .3 % 5% 5 .8 % 15 5 .0 % 4 .6 % 4 .1% 13.6 3 .5 % 3 .3 % 3 .2 % 3 .0 % 0 0% 20% 4Q09 1Q10 2Q10 3Q10 4Q10 1
Slide 18: Impairment allowance
HSBC Finance Corporation Impairment allowance(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 5 20% 16 25% 4.0 14.8 3.3 15% 3.0 2.6 2.2 10% 1.8 20% 10 .3 % 9 .5 % 1.6 1.6 1.6 9 .0 % 8 .0 % 6 .7 % 5% 12 11.5 5 .8 % 5 .5 % 5 .5 % 5 .2 % 10.3 0 0% 4Q09 1Q10 2Q10 3Q